Tag Archives: FINRA

Put out to pasture…

Image courtesy of dan/FreeDigitalPhotos.net

The unemployment numbers may be going down lately but you can add the Budweiser Clydesdales to the list of people – or in this case, animals – who need to brush up on their LinkedIn skills. The iconic horses, who have graced Budweiser holiday commercials since 1987 apparently haven’t been puling their weight to attract a hipper, younger beer-guzzling demographic. In fact, 44% of 21-27 year old beer drinkers/guzzlers have never even (gasp!) tried Budwesier. Can you even stand it? So the beer company will now trek out to college towns for food festivals and host parties to increase in order to woo that elusive younger, hipper crowd. As for any new ad campaigns, Budwesier will substitute Cydesdales for millenials who will stare back into the camera as they poignantly utter: “If you could grab a Bud with any of your friends these holidays, who would it be?” I’d say a Clydesdale.

Fined and fine…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Citigroup has to pay even more fines. Again. Except this time those fines have nothing to do with its dubious role in the housing collapse and fiscal nightmare of 2008. The Financial Industry Regulatory Authority, or as the cool kids say, FINRA, has fined Citigroup $15 million because the bank didn’t do enough to prevent and deter its analysts from engaging in all kinds of questionable activities. Which all sounds way more provocative than it is. From January 2005 to February 2014 Citigroup issued about 100 warnings to analysts for doing things they were’t supposed to do. Issuing those warnings was clearly the responsible thing to do. Except that there was way too much between the warning until disciplinary action took place. But then, it seems, Citi was wee bit too soft in punishing the offenders, which is perhaps why the analysts kept repeating their dubious actions. In one instance, equity research analysts hosted a dinner for employees and clients (mind you, I was not invited) where the hosts/analysts discussed their stock picks. I’m sure the topic made for fabulous dinner conversation, however the discussed stock picks did not jive with all the research conducted by the hosts/analysts. That was, of course, just one of the many (many) examples of breaches for which Citi was fined. Naturally, the bank preferred not to offer any comments on the matter except to say ,”We are pleased to have resolved and put this matter behind us.” I’ll bet. And rest assured that $15 million will do nothing to thwart Citigroup’s holiday shopping.

Is a luxury refi an oxymoron?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Many people today refinance their mortgages and Saks Fifth Avenue is no different. Okay, it’s a lot different but I digress. Hudson Bay, the company that owns the luxury retailer, took out a 20 year mortgage for its flagship store conveniently located right on New York City’s Fifth Avenue to the whopping tune of $1.25 billion. Next year the store is getting a $250 million renovation.The building, however is valued at $3.7 billion. If that doesn’t scream prime real estate I don’t know what does. Did I mention that Hudson Bay paid $2.9 billion for the entire chain? How very lucky for them.